Personal Finance – The Life Cycle of Financial Planning:
An understanding of finance is key to successful investing. Personal Finance – Turning Money Into Wealth (6th Edition) identifies the Life Cycle of Financial Planning:
There are three stages in the financial life cycle: (1) the early years— a time of wealth accumulation, (2) approaching retirement— the golden years, and (3) the retirement years.
Stage 1: The Early Years – The first stage can be decades long and centers on the accumulation of wealth.
Stage 2: Approaching Retirement –
During the second phase, financial goals shift to capital preservation, continued growth of the wealth accumulated and estate planning.
Stage 3: The Retirement Years – During retirement you’re no longer saving, you’re spending. However you must allow for growth in your savings to keep inflation from eating it away.
More Personal Finance
More Financial Planning